Making false claims gets tougher

[mithun]

If you thought making a false claim for your car is easy, watch out! In Southeast Asia’s first post-accident analysis facility coming up in Uttar Pradesh, a database of accident-prone cars will be set up to help insurance companies assess pricing and frauds better.

This will directly impact underwriting in the motor insurance sector. According to industry estimates, approximately 20-25% of the total motor insurance claims are on account of false claims.

The Rs 100-crore facility, being set up in Rae Bareli under the National Automotive Testing and R&D Infrastructure Project (NATRIP), will do a post-mortem of an accident.

Specially-trained investigators will go to the accident site and collect all possible data and evidence related to the mishap.

The evidence will then be uploaded on computers scientifically designed to analyse the cause of the accident. It will also be possible to determine the precise timing and cause of the accident.

Though most insurers have data on the number of claims made and processed in a given period, this would be more significant if insurers could identify higher or lower claims on a particular company, specific car model or geographical location. This database will give sharper pointers to insurers.

The motor insurance portfolio is fraught with issues, including multiple insurance policies against the same vehicle to facilitate multiple claims or the fraudulent re-use of automobile registration numbers of junked vehicles.

One of the commonest frauds is of the type where policyholders make false claims by fudging the date of the accident.

Come January 2007, deregulation of tariffs in the general insurance industry may see a substantial drop in the premium rates even as risk exposures will continue to remain the same. This will worsen the claims ratio, said an industry analyst.

NATRIP was approved by the government last year to provide world-class automotive testing facilities in India. After Japan, India will be the second country in Asia to possess such a facility.


Source : http://economictimes.indiatimes.com/...ow/1470174.cms

[GTO]

Its false claims, that make things difficult for those of us with honest claims.

[sandeep108]

Originally Posted by GTO

Its false claims, that make things difficult for those of us with honest claims.

Same issues with mediclaim...

[da MotorHead]

I renewed my car's insurance today with Iffco. The guy I dealth with says that there's still no formal notofication about the deregulation of tarrifs. Its in the air, but most likely it won't happen for atleast another year..
dMH

[kutlee]

I think the system in Inida regarding registartion of vehichles, road tax, insurance, transfer of ownership etc needs a major overhaul in itself. Its all outdated. There is no relation between one another!
I hope those who do post mortem will do the job right! Atleast things should be made easy for honest people atleast.

[sandeep108]

Forget about false claims, most insurance companies simply do not know what to do about increasing theft claims, especially of diesel vehicles. In India, the honest always end up being at the receiving end.

[naveendhyani]

so far there has been one way traffic of how things work from the insurance companies. they can make rules as per their whims & wishes & govt stands by their side thereby making false claims sometimes a necessaty for the commoner.

[sandeep108]

Originally Posted by naveendhyani

so far there has been one way traffic of how things work from the insurance companies. they can make rules as per their whims & wishes & govt stands by their side thereby making false claims sometimes a necessaty for the commoner.

I would beg to differ somewhat. While the insurance cos. may be standing behind technicalities and also delay at times, it is also upto the consumer to understand what the policy is about. The consumer usually always tries to cheat an insurance co so they will get technical about it. In fact actually motor insurance is one of the most NON-whims and fancies insurance. Everything including depreciation, IDV, etc. is specified.

If you actually give a policy without depreciation for motor cars, mostly every 3-4 year old car owner will renovate his car at insurance co's expense.